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Remedies Keyed to Tabb, 8th
K-Mart Corporation v. Oriental Plaza, Inc.
Citation:
875 F.2d 907 (1st Cir. 1989)Facts
K-Mart Corporation and Oriental Plaza, Inc. entered into a lease agreement on September 21, 1983, for retail space at the Oriental Plaza Shopping Center in Humacao, Puerto Rico. The lease contained express covenants that OPI would build no more than 10,000 square feet of retail space in the parking area north of K-Mart’s store and that any construction would conform to an agreed site plan (Exhibit B) without deviation absent K-Mart’s express written consent. Between February 1986 and December 1986, OPI submitted various revised site plans to K-Mart seeking approval for modifications. K-Mart approved one plan in April 1986, but it was rejected by the Planning Board. In December 1986, OPI submitted another site plan showing a proposed bank building and three retail structures, but the cover letter focused only on the bank and parking layout. On March 20, 1988, OPI commenced construction on three retail buildings without K-Mart’s approval. The buildings totaled 10,800 square feet, exceeded the lease maximum, and were located substantially closer to K-Mart’s store than permitted, reducing available parking and obstructing visibility of K-Mart’s store from the highway. K-Mart objected on June 13, 1988, after eleven weeks of construction when the structures were substantially complete, and filed suit on June 22, 1988.
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